February 13, 2012—The U.S. House of Representatives passed the “Civilian Property Realignment Act,” H.R. 1734, on February 7. The bill promises to reduce the size of the federal government’s footprint and save taxpayers billions of dollars through realignment and consolidation of the federal real estate portfolio. The proposed legislation will now make its way to the U.S. Senate.
Introduced in 2011 by Representative Jeff Denham, R-CA, chair of the Subcommittee on Economic Development, Public Buildings and Emergency Management, the bill addresses federal real estate holdings and seeks to maximize space utilization, create value in underperforming assets, reduce reliance on costly leasing, improve the overall management and controls related to federal properties, and maximize the return to the taxpayer. Thirty-one House members co-sponsored the bill.
The International Facility Management Association (IFMA) commended the action along with other members of the High-Performance Building Congressional Caucus Coalition including lead organization ASHRAE, the American Institute of Architects, APPA, BOMA International, International Association of Plumbing and Mechanical Officials, International Code Council, National Electrical Manufacturers Association, National Institute of Building Services, and U.S. Green Building Council.
The coalition applauded the co-sponsors of the bill for their hard work in promoting it and for recognizing the important role space and asset utilization play in achieving high-performance buildings and maximizing the value of federal property, noting that the act incorporates industry-leading FM practices to streamline the portfolio of federal buildings.
The White House Office of Management and Budget reportedly estimates that the benefit to taxpayers from passage of the proposed legislation will be at least $15 billion, with the potential for even greater savings. The bill is self-funding, providing for a one-time appropriation of $88 million, after which proceeds from the sale of excess federal properties would be used to repay the treasury and give taxpayers a 60 percent windfall on any property sold.
“I believe the potential to save billions of dollars is real,” said Rep. Denham. “Given our trillion-dollar deficit and skyrocketing debt, we must examine every area of government and look for ways to cut spending. My bill establishes a nine-person Civilian Property Realignment Commission to take politics out of the process, increase transparency and save billions of taxpayer dollars.”
An amendment to the bill introduced February 6 by Representative Russ Carnahan, D-MO, requires federal agencies to conduct a full life-cycle cost analysis of any building design, construction, or operations and maintenance projects, thereby helping the U.S. government further reduce operating costs just by making sure all the costs of construction are taken into account.
